Polish import-export company Genesis Fresh has spent a fair amount of time over the past few months trying to learn more about new and emerging markets outside Europe, a strategic move prompted not only by the Russian import embargo itself but also the large volume of fruit available in Poland as a result.
The Warsaw-based company’s owner Jan Nowakowski admits the ban has had a serious impact on his business as well as the industry as a whole.
“The Russian ban has been having a direct and indirect effect on all fruit and vegetable companies in Europe, including us,” he concedes. “Since the situation [began], we have been struggling with lowered prices for most products. Apple production is higher this season compared to last year and the years before. Due to overproduction and the Russian embargo our earnings are little.”
Out of necessity, Genesis Fresh has joined other firms in scoping out alternative commercial arenas, but Nowakowski warns of the challenges associated with targeting new sales in non-traditional markets.
“We have been looking at the markets of Asia, North Africa and the Middle East basically,” he explains. “However, we have learned it is a real challenge to meet the requirements of new, overseas countries as the standards and conditions are quite unlike the European ones. Moreover, shipping costs and the risk of fresh fruit transportation over a very long distance that takes approximately one month is significantly higher.”
Back in Europe, where the group continues to sell a large proportion of its fruit, Nowakowski says he has been pleased with the response of buyers to the Russian situation.
“The European retail sector is somehow trying to help to sell more fruits and vegetables produced in Europe,' he says. 'Together with their suppliers, they are creating new promotions and new packaging to attract fresh produce sales. Genesis Fresh also takes part in this process by creating new packaging for its clients.”
